Fullerton proposes $4 million settlement with the county

Landlord Gregory L. Parkin's Parkin Gardens Apartments complex on Gilbert Street fell under scrutiny from the city of Fullerton for housing violations. The property, which is in the proposed "blighted" redevelopment area to be added to merged redevelopment properties, was eventually put into receivership. ROD VEAL, THE ORANGE COUNTY REGISTER

FULLERTON - The city has agreed to pay Orange County $4 million to avoid a lawsuit over a redevelopment project.

The city wants to use tax increment funds to improve areas in the southwest and southeast sections of the city that the Redevelopment Agency considers blighted. The funds would be used to revitalize 1,165 acres with public improvements, affordable housing funds and small business loans, according to city officials.

The county and a local activist group had opposed the plan because it could divert about $25 million in property tax revenue that otherwise would have gone toward county services.

Under the proposal, if approved by the county Board of Supervisors at its Sept. 22 meeting, the $4 million city payment to the county would come from general funds. Rent would be paid to the county in agreed payments and the city would sublease the property back to the county for $1 per year.

That money would be applied to a county-designated project such as the aging county animal shelter that would benefit Fullerton residents, Redevelopment Agency Director Rob Zur Schmiede said.

The proposed agreement also indicates if the city complies with the provisions of the agreed-upon lease arrangements, the county would not oppose or challenge the city and not support any third-party challenge.

In early discussions, a local activist group, Friends for Fullerton's Future, said it would pursue litigation to block the proposal.

Fourth District Supervisor Chris Norby, who lives in the area the Redevelopment Agency has declared as "blighted", said today he personally believes the settlement would not be allowed under state law if there is in fact no blight.

"The county loses a lot of money to redevelopment agencies, and that money must be protected as well as the entire legitimacy of the redevelopment process," Norby said.

Norby said the designation "blight" casts a cloud over neighborhoods in terms of possible future eminent domain and property value.

The City Council voted 3-2 Tuesday to approve the plan.

Council member Shawn Nelson, who opposed the decision with Councilwoman Sharon Quirk, said the city should not be involved.

"It's a gimmick ... a sleight of hand trick," Nelson said. "The city shouldn't be leasing an animal shelter, it stinks."

Council members Dr. Richard Jones and Pam Keller disagreed.

"This is smart business," Jones said. "The city won't be out any money. We're just moving money from one pocket to another."

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